By: Jeff Cooper

Hit and Run Morning Stock Report: October 25th, 2022

There Are No Coincidences

“We believe the Fed, the White House, the Wall Street Journal, and the Bank of Japan were all working closely together on Friday morning.” Larry McDonald

“The problem of synchronicity has puzzled me for a long time, ever since the middle twenties, when I was investigating the phenomena of the collective unconscious and kept on coming across connections which I could simply not explain as chance groupings or “runs.” What I found wee “coincidences” which were connected  so meaningfully that their “chance” concurrence would represent a degree of improbability that would have to be expressed by an astronomical figure.” Carl Jung

There are no coincidences.

As suspected in this space on Friday and Monday and on the H&R Twitter feed,  Friday’s rip was a Cahoots Shenanigan.

The fix was probably in from the News Reversal on October 13th’s hot CPI.

There are no coincidences.

The stage was set into well-advertised crash expectations with puts buying running hot.

It was a perfect opportunity to toss a Molotov into an over-crowded trade.

After all, there is an election coming. After all, the BOJ failed in its last attempt to support the yen this month. After all the Saudi’s gave Joe the bird.

There are no coincidences.

After all, the Fed has been caught red-handed dealing from the bottom of the deck on more than one occasion.

Why do you think you’ve got dueling Fed Governors jawboning in different directions: if there’s one thing the market can’t stand its uncertainty, and that serves their purpose of throwing cold water on speculation

Creating a Chop Festival.

It also fluffs up the Fed’s feathers allowing them to believe that they hold pocket aces and can trump natural law when it comes to the markets.

Yes, the powers that be can move the markets for a while…but in my opinion, they can’t change the tides.

Today, there is a strong likelihood that the SPX 3-Day Chart will turn up when it satisfies 3 CONSECUTIVE daily higher highs (not closes) for the first time since the Oct 13 low.

The subsequent BEHAVIOR will be important to OBSERVE.

If the 3 of 3 to the downside very bearish scenario is on deck, a turn up of the 3 Day Chart should define a high soon in terms of time and price just as it did on Sept 9/12.

The SPX pushed higher for one day and above its rising 50-day line before dropping sharply.

Now the 50-day line is declining and meaningfully higher at 3877.

That said, as we know, 3854 is a key region being 540 degrees (a cube, a true square) up from the 3492 low.

Interestingly 385 (for 3850) is square today, October 25th.

The Square of 9 Wheel has been exerting its influence with authority of late.

The low day October 13 is square 349 (3490).

The low that day, 3492, is the low so far for 2022.

There are no coincidences.

You can’t make this stuff up.

It’s not happenstance.

It’s sacred geometry.

Something the Cahoots and shenanigans can’t plug the Levee with.

This morning, as I write, the SPX is down slightly-- 11 pts.

This may once again be Bleedback into the prior days range prior to a try for 3850…or at least a push above Monday’s high to turn the 3-Day Chart up.

Bleedback into the prior day’s range is an important concept: You seldom if ever see price bars

Stacked one upon another or vice versa to the downside like Totem Poles.

Even in the crash of 2020, there were moves in the opposite direction of the waterfall…moves that lasted a day…not just intraday Bleedback.

Be that as it may, if the rally persists, ie past a presumed turn-up in its 3-Day Chart and past 3854, then the agenda may be a drive to the 4100 region…albeit, I’ll believe it when I see 3864 captured.

If so there is potential for that to play out quickly..

Below is the weekly SPX I promised yesterday.

A trend-line connecting all the highs intersects with a Ghost Line connecting the June, July, and early September lows.

They intersect in mid-November.

This is important because mid-November is 90 days/degrees from the August 16th Secondary High.

As well November 16th is 180 degrees straight across and opposite 482 (4820) the all-time high in Jan 2022.

The significance is proved by the geometry of the Principle of Squares because 482 is also, by definition, square August 16.

Said another way, the August 16th turning point was forecast and predicted based on this Time/Price square-out.

The other side of the coin is that November 16th may coincide with a low and that low may well be the panic low, the Capitulation low that has been missing in this market.

When you use the number grid in the center of the Square of 9 Wheel as years instead of prices (what I suspect the Indians and Egyptians were doing with it thousands of years ago) you get something interesting.

The year 2022 aligns with November 11.


In the aforesaid mid-November window.

In sum, we’ve pointed out the uncanny analog between 2008 and 2022 several times.

2008 is to 2022 as 1929 is to 1987…to a point.

I have also flagged a week positive divergence on a proprietary indicator.

I initially thought this backstopped the idea of drive to 4100 sooner than later.

However, I took the weeklies back to 2008 and the same POSITIVE divergence existed in August 2008

Prior to the September crash.

I will show this chart in tomorrow morning’s report.

It is a real eye-opener.

Suffice it to say that this means the market is not out of the woods as even the Bears on CNBC are buying into a rally phase right here, right now.

There are no coincidences.